Graduate Visa UK Changes 2025: How to Hire and Sponsor Graduates

The graduate visa UK allows international students who have completed an eligible course at a licensed UK higher education provider to stay in the UK to live and work. Currently, bachelor’s and master’s degree holders can remain for up to two years, while PhD graduates receive three years of leave. Importantly, this visa is unsponsored — meaning graduates do not require employer sponsorship or a certificate of sponsorship (CoS) to start working.
 

During their time on a graduate visa, individuals can take up employment at any skill level, including self-employment or voluntary work. Employers are not required to hold a sponsor licence and do not incur costs associated with Skilled Worker visa sponsorship. 
 

However, the graduate visa is not a settlement route. Time spent on this visa does not count towards indefinite leave to remain (ILR), and the visa cannot be extended. As a result, employers looking to retain graduate hires long-term must plan for a transition to the Skilled Worker visa.

The UK government has proposed major changes to the graduate visa UK in the May 2025 Immigration White Paper. These reforms are designed to reduce overall migration numbers and encourage international graduates to enter high-skilled employment. Below are the key proposed changes that will affect the graduate route visa, the post graduate visa UK offer, and employer access to international graduate talent.

Graduate visa duration reduced to 18 months

The government proposes reducing the graduate visa duration from two years to 18 months for bachelor’s and master’s graduates. This is a significant change to the graduate visa UK, which was introduced in 2021 to allow international students to stay and work in the UK for two years after completing their degree (three years for PhD holders).

Employers should be aware that graduates may need to move into a sponsored role more quickly than before, which could affect recruitment and sponsorship planning.

A levy on international student tuition income

In addition to shortening the route, the government has proposed a new levy on income from international students, to be paid by higher education institutions. This levy would be reinvested into the UK’s higher education and skills system. However, the education sector has pointed out the contradiction in reducing the attractiveness of the UK’s study offer — through shorter post-study opportunities — while simultaneously seeking to extract greater financial contribution from international student recruitment.

Restrictions on bringing dependants under the Graduate visa

It is also important to note that although no new restrictions have been proposed specifically for graduate visa dependants, earlier policy changes that took effect in January 2024 already limit dependants to those who were part of the original Student visa application. These changes are expected to reduce the number of people entering the Graduate route, both in terms of main applicants and dependants, over the coming years.

The graduate visa presents a low-risk, low-cost route for employers to hire international graduates for up to 18 months. Because no sponsor licence is required, the process is fast and accessible. Employers can make a job offer without checking whether the role meets salary thresholds, is at a particular skill level, or falls under a specific occupation code.
 

However, the route is not renewable. Employers who wish to retain graduate employees long-term must initiate a switch to the Skilled Worker visa UK before the graduate visa expires. This is where strategic planning becomes essential.

Many employers use the graduate visa as a stepping stone to sponsored employment under the Skilled Worker visa. This pathway allows companies to retain high-performing graduates, but the sponsorship process must meet strict criteria — especially under the new immigration rules UK that came into effect on 22 July 2025.
 

To sponsor a graduate via the Skilled Worker route, employers must hold a valid sponsor licence and assign a Certificate of Sponsorship UK. The role offered must be at RQF level 6 or above (equivalent to graduate level) and meet new salary thresholds. From July 2025, the general salary threshold has risen to £41,700, although graduates switching to the Skilled Worker visa qualify as “new entrants”, which lowers the required salary to £33,400 or 70% of the going rate for the role — whichever is higher.

Employers should also be aware that the Skilled Worker visa minimum salary will vary by role and occupation code. For example, roles in digital technology or engineering may have higher going rates. Employers must confirm that the role meets both the skill and salary requirements before assigning a CoS.
 

Importantly, the Skilled Worker visa UK 2025 changes also affect settlement. While the route itself remains a path to ILR, the government now proposes that most migrants, including those switching from the graduate visa, will need to spend 10 years in lawful residence before qualifying for ILR. This significantly extends the retention timeline and should factor into long-term hiring plans.

From 22 July 2025, only degree-level roles—classified at RQF level 6 or above—will be eligible for sponsorship under the Skilled Worker visa UK, unless the job is included on the Temporary Shortage List (TSL) or the Immigration Salary List (ISL). This marks a major shift from previous years, where roles at RQF levels 3–5 could also be sponsored.
 

RQF Level 6 Requirement: Graduate-Level Jobs Only

Under the new rules, most jobs that do not require a university degree — such as junior care workers, receptionists, teaching assistants, or sales roles — will no longer meet the eligibility criteria for Skilled Worker sponsorship. To sponsor an international graduate or overseas worker, employers must ensure that the role:

• Is classified as RQF level 6 or above, meaning it typically requires a UK bachelor's degree or equivalent
   
• Meets the minimum salary threshold, either the general threshold (£41,700) or the new entrant rate (£33,400), depending on the applicant’s status
   
• Temporary Exceptions: TSL and ISL Roles: the only exception to the degree-level requirement applies to jobs listed on the Temporary Shortage List or Immigration Salary List. These lists include roles in sectors facing acute labour shortages.

Strategic Advantage: Graduates Already in the UK

Hiring graduates who have completed a UK degree and currently hold a graduate visa UK gives employers a significant strategic advantage:

• No Defined CoS required: Graduates switching in-country from the graduate visa to Skilled Worker visa only need an Undefined Certificate of Sponsorship, which can be issued more quickly
   
• No right-to-work gap: Graduates already living in the UK can begin working immediately and switch to a sponsored role at any time
   
• New entrant salary discount: Graduates switching into sponsorship qualify for the lower salary threshold for new entrants — £33,400 or 70% of the going rate — which is significantly less than the general threshold of £41,700
   

Employers do not need to conduct international recruitment to benefit from Skilled Worker sponsorship — graduates already in the UK are available, easier to onboard, and may be more familiar with UK workplace culture.

As the 2025 graduate visa reforms approach, employers must adapt to a more selective and regulated immigration system. While the graduate visa remains a valuable entry point to hire international talent without sponsorship, its reduced length and stricter conditions mean employers must act quickly to retain these workers long-term.
 

Companies should:

• Audit existing graduate hires and their visa timelines
   
• Review which roles meet RQF level 6 and salary thresholds
   
• Apply for a sponsor licence if they don't already have one
   
• Plan Skilled Worker transitions before graduate leave expires

With the right strategy, UK employers can continue hiring and retaining graduates under the new rules — strengthening their teams with diverse and skilled talent from around the world.